Weyerhaeuser Company · NYSE:WY
Weyerhaeuser — Q3 2011 Earnings Presentation
18 slides from Weyerhaeuser's earnings presentation, Oct 28, 2011
Slide 1: Earnings Release – 3rd Quarter 2011
WEYERHAEUSER Earnings Release – 3rd Quarter 2011 10/28/2011 • 1
Slide 2: Forward-Looking Statement
FORWARD-LOOKING STATEMENT This presentation contains statements concerning the company’s future results and performance that are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on various assumptions and may not be acc
Slide 3: Statements Relating to Non-GAAP Financial Measures
STATEMENTS RELATING TO NON-GAAP FINANCIAL MEASURES During the course of this presentation, certain non-U.S. GAAP financial information will be presented. A reconciliation of those numbers to U.S. GAAP financial measures is included in this presentation which is available on the company’s website a
Slide 4: 2011 Q3 Consolidated Results
2011 Q3 CONSOLIDATED RESULTS Chart 1 $ Millions except EPS 2011 2011 2011 Q3 Contribution to Pre-Tax Earnings Q2 Q3 Revenues from Continuing Before Special Items $1,569 Operations ($ Millions) Timberlands $112 $62 Net Earnings Wood Products (53) (43) $66 Before Special Items ($ Millions)1. Cellulose
Slide 5: Diluted EPS Before Special Items
DILUTED EPS BEFORE SPECIAL ITEMS1 Chart 2 A reconciliation to GAAP EPS is available on Chart 14 and at www.weyerhaeuser.com $0.80 $0.60 $0.40 $0.20 $0.25 $0.12 $0.20 $0.10 $0.06 $0.00 $0.00 -$0.07 -$0.20 -$0.40 -$0.60 -$0.80 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2010 2011 1. Weyerhaeuser’s share count increased duri
Slide 6: Reconciliation to GAAP
RECONCILIATION TO GAAP Chart 3 $ Millions except EPS Diluted EPS Net Earnings 1 2011 2011 2011 2011 Q2 Q3 Q2 Q3 Diluted EPS / Net Earnings Before Special Items $0.06 $0.12 $32 $66 Income Tax Adjustments and Credits 0.15 83 Gain on Sale of Assets and Operations (0.01) 0.06 (6) 32 Charges for Impairme
Slide 7: Changes in Contribution to Earnings by Segment
CHANGES IN CONTRIBUTION Chart 4 TO EARNINGS BY SEGMENT Earnings Before Special Items, Interest Expense and Taxes ($ millions)1 $250 $200 55 2 $150 2 140 126 (5) $100 10 (50) $50 $0 -$50 2011 Q2 Timberlands Wood Cellulose Real Estate Corp & Other Discontinued 2011 Q3 Products Fibers Operations 1. A r
Slide 8: Timberlands Segment
TIMBERLANDS SEGMENT Chart 5 Timberlands ($ Millions) 2011 Q2 2011 Q3 3rd Quarter Notes Earnings from disposition of non-strategic Third Party Revenues1. $287 $248 timberlands declined $28 million Inter-Segment Revenues1. $107 $102 Lower fee harvest volume in the West, offset by higher volume in
Slide 9: Fee Harvest and 3rd-Party Log Realizations — Western / Southern Timberlands
FEE HARVEST AND 3RD-PARTY LOG REALIZATIONS — WESTERN / SOUTHERN TIMBERLANDS Chart 6 Fee Harvest Volume Average 3rd-Party Realizations — Logs 3000 120 109 110 104 100 2535 98 2600 100 95 91 2355 90 84 South (m3) 2116 2180 West ($/m3) 2140 2200 2060 80 (Thousands) ($/m3) 1881 70 1800 60 1747 50 43 44
Slide 10: Wood Products Segment
WOOD PRODUCTS SEGMENT Chart 7 Wood Products ($ Millions) 2011 Q2 2011 Q3 3rd Quarter Notes Revenues from Continuing Operations $605 $603 Slightly lower sales volumes for most Contribution from Continuing Operations products ($53) ($43) Before Special Items Lower log costs Contribution from Disco
Slide 11: Average 3rd-Party Realizations — OSB and Lumber / Engineered Wood Products
AVERAGE 3RD-PARTY REALIZATIONS — Chart 8 OSB AND LUMBER / ENGINEERED WOOD PRODUCTS OSB and Lumber Engineered Wood Products 500 2400 450 2200 400 Solid Section ($/CCF) 2000 1905 348 1849 1854 1851 1865 350 Lumber ($/MBF) 1785 317 315 ($/Thousand) 293 301 301 1800 1718 ($/Unit) 287 300 1600 250 266 OS
Slide 12: Cellulose Fibers Segment
CELLULOSE FIBERS SEGMENT Chart 9 Cellulose Fibers ($ Millions) 2011 Q2 2011 Q3 3rd Quarter Notes Revenues $526 $503 Lower average selling prices for pulp Lower maintenance costs and increased Contribution to Pre-Tax Earnings $80 $135 production due to lack of annual outages 2nd quarter include
Slide 13: Real Estate Segment
REAL ESTATE SEGMENT Chart 10 3rd Quarter Notes Real Estate ($ Millions) 2011 Q2 2011 Q3 Seasonal increase in home closings Revenues $191 $211 Margins on homes closed improved due to mix 3rd quarter included no income from sale of land Contribution to Pre-Tax Earnings $8 $10 and lots, compared
Slide 14: 2011 Q4 Outlook
2011 Q4 OUTLOOK Chart 11 Segment Comments Lower selling prices and fee harvest volumes in the West Flat selling prices and fee harvest volumes in the South Seasonally higher road and silviculture expenses Timberlands Excluding earnings from disposition of non-strategic timberlands, expect 20
Slide 15: Appendix
APPENDIX 10/28/2011 • 15
Slide 16: Pro Forma Earnings Per Share
PRO FORMA EARNINGS PER SHARE Chart 12 On Sept. 1, 2010, Weyerhaeuser paid a previously announced special dividend consisting of approximately 324 million shares of common stock and $560 million in cash. After payment of the special dividend, Weyerhaeuser had approximately 536 million basic share
Slide 17: Earnings Summary
EARNINGS SUMMARY Chart 13 $ Millions except EPS 2010 2011 Contribution to Pre-Tax Earnings Before Special Q1 Q2 Q3 Q4 Q1 Q2 Q3 Items Timberlands $81 $70 $75 $56 $89 $112 $62 Wood Products (66) (19) (102) (81) (36) (53) (43) Cellulose Fibers 19 74 181 138 86 80 135 Real Estate 31 27 20 33 (1) 8 10 Co
Slide 18: Earnings Per Share Reconciliation
EARNINGS PER SHARE RECONCILIATION Chart 14 2010 2011 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Diluted EPS before Special Items ($0.07) $0.20 $0.25 $0.10 $0.00 $0.06 $0.12 Income Tax Adjustments and Credits (0.15) 3.25 0.33 0.15 Net Gain on Divestiture of Assets and Operations 0.12 0.03 0.06 0.18 (0.01) 0.06 Closures, R